Godrej Consumer Products Limited · NSE:GODREJCP
Godrej Consumer Products — Q1 FY2021 Earnings Presentation
35 slides from Godrej Consumer Products's earnings presentation, Aug 4, 2020
Slide 1: Q1FY2021 Investor and Analyst Performance Update
Q1FY2021 Investor and Analyst Performance Update 4 August, 2020
Slide 2: Key Highlights
KEY HIGHLIGHTS
Slide 3: Resilient performance; excellent growth in Household Insecticides
Resilient performance; Consolidated sales growth -1% (0% CC) Consolidated EBITDA growth 3% excellent growth in Household Insecticides (27%) and Hygiene (15%) India Sales growth 5% India EBITDA growth 23% 1 85% of global portfolio comprises 76% of global portfolio comprises Household Insecticides, Hy
Slide 4: 85% of global portfolio delivering 9% growth
1 85% of our global portfolio comprises Household Insecticides, Hygiene and Value For Money products, delivering 9% growth; Household Insecticides and Hygiene combined portfolio grows 20% 85% contributing to 9% growth HOUSEHOLD HYGIENE VALUE FOR MONEY OTHERS INSECTICIDES Performance Q1FY2021 (INR) 2
Slide 5: 76% of global portfolio comprises India and Indonesia
2 76% of our global portfolio comprises India and Indonesia, delivering 5% growth each 76% I Latin America Africa, USA & Middle East Indonesia India Performance Q1FY2021 23%* (CC) - 23% (CC) 5% (CC) - 4%* (INR) - 22% (INR) 9% (INR) 5% (INR) 5 Note: *Includes SAARC; CC - Constant Currency
Slide 6: Driving the resurgence of Household Insecticides; 27% growth
3 Driving the resurgence of Household Insecticides; 27% growth • Consumers do not want to take any chances with their health; vigilance against mosquitos and protecting themselves against malaria and dengue has gone up • Full portfolios across formats and price points in India and Indonesia • Pivoti
Slide 7: Strong growth of 15% in Hygiene; 45 product launches
4 Strong growth of 15% in Hygiene; hyper focus on innovation with 45 product launches across geographies Saniter in Indonesia Magic, the most affordable and sustainable hand wash in the world Protekt in India 7
Slide 8: Responding with agility to supply chain challenges
5 Responding with agility to supply chain challenges; scaling up alternate channels India • Factories operating at 90% capacity • On ground sales team availability has improved; 90% now actively taking orders • Doubling down on e-commerce and chemist channels Africa, USA and Middle East • Factories
Slide 9: Serving our communities
6 Serving our communities TV Digital 9E@09.0=> Trade Print CSR and PR Godrej Group: INR 50 crore fund to #ProtektIndiaMovement Partnerships and community support relief efforts in India A multi-media, multi-channel campaign support across geographies on hand washing and public health 9
Slide 10: Financial Performance Update
FINANCIAL PERFORMANCE UPDATE
Slide 11: Q1 FY2021: Financial Performance
Q1 FY2021: Financial Performance Consolidated India Growth (Year-on-Year) Business Business !0?&,70>%0;:=?0/ (1%) 5% !0?&,70>:9>?,9?@==09.C 0% - EBITDA 3% 23% !0?#=:14?%0;:=?0/ (3%) 13% !0?#=:14?*4?3:@?0B.0;?4:9,7,9/:90:114?08> 3% 23% 11
Slide 12: Q1 FY2021: Exceptional and One-off Items
Q1 FY2021: Exceptional and One-off Items Consolidated Business Q1 FY2021 Q1 FY2020 !0?#=:14?%0;:=?0/ 395 408 Exceptional (post tax) Restructuring cost in Latin America and Africa, USA & Middle East 4.6 3.0 Reversal of contingent consideration in USA (33.2) - Impairment of investment (BBLUNT in India
Slide 13: India and Indonesia deliver resilient growth; Africa, USA & Middle East weak
Q1 FY2021: India and Indonesia deliver resilient growth; Africa, USA & Middle East cluster performance is weak Constant Sales Growth Geography Currency Growth (Ũ Crore) (Year-on-Year) (Year-on-Year) India 1,358 5% 5% 9/:90>4, 405 9% 5% 1=4.,(&,9/ 4//70,>? 437 (22%) (23%) ,?4980=4.,,9/&% 126 (4%) 23%
Slide 14: Bridge between Reported to Operating EBITDA
Q1 FY2021: Bridge between Reported to Operating EBITDA Africa, USA Latin America India Indonesia & Middle East & SAARC $ + %0;:=?0/' ,=249 27.7% 23.1% (2.7%) 11.3% @>490>>>@;;:=?.3,=20>%:C,7?C (5.8) 1.8 4.0 - '0.394.,7100>Ũ.=:=0 $ + /5@>?0/' ,=249 $ + /5@>?0/' ,=249 23.3% 23.7% 11.9% 2.3% 3,92049' ,
Slide 15: Q1 FY2021: Key Balance Sheet data
Q1 FY2021: Key Balance Sheet data Particulars Units June 30, 2020 June 30, 2019 March 31, 2020 *:=6492,;4?,70B,>3 Ũ crore 213 347 286 *:=6492,;4?,7 Days 8 14 11 ,>3<@4A,709?> Ũ crore 1,887 1,101 1,407 Debt denominated in INR Ũ crore 70 273 317 Debt denominated in USD Ũ crore 2,796 (USD 370 m) 2,696
Slide 16: India Business Update
INDIA BUSINESS UPDATE
Slide 17: Strong performance led by Household Insecticides and Hygiene
Strong performance led by resurgence in Household Insecticides and scale up of Hygiene Financial performance Category performance • Sales growth of 5% with underlying volume growth of 3% • Resurgence of Household Insecticides continued with strong • EBITDA margins at 27.3%, increase of 400 bps year-
Slide 18: Strong performance led by growth in Household Insecticides and Hygiene
Strong performance led by growth in Household Insecticides and Hygiene Sales Growth (Ũ Crore) (Year-on-Year) Household Insecticides 540 27% Soaps 545 (2%) Hair Colours 149 (18%) Other Categories 129 (11%) Unbranded and Exports 48 (23%) ':?,7 Sales and trade promotion spends, etc. 53 (36%) (To be net
Slide 19: Strong resurgence in Household Insecticides
Strong resurgence in Household Insecticides • Sales growth of 27% accelerated due to strong underlying consumer demand in electrics and burning formats • Pivoting advertising more towards disease prevention • Goodknight Gold Flash liquid vaporiser continues to receive an excellent response post the
Slide 20: Muted performance in Soaps
Muted performance in Soaps • Sales decline of 2% • Continued focus on micro marketing initiatives to drive growth • New launches in Health scaling up well 20
Slide 21: Weak performance in Hair Colours
Weak performance in Hair Colours • Sales decline of 18% due to discretionary nature of the category and impact of lockdown in early part of the quarter • Sequential improvement; recovery from June • Godrej Expert Rich Crème continues to perform well by leveraging Do-It-Yourself (DIY) trends through
Slide 22: Godrej Protekt scaled up into full Hygiene portfolio
Godrej Protekt scaled up into full Hygiene portfolio 22
Slide 23: Pivoting other categories for more relevance
Pivoting other categories for more relevance '=,A07 :80 ,-=4. Air Freshener Bathroom Air Freshener Liquid Detergent Bathroom and + Sanitiser + Hygiene and Protection + Fabric Sanitiser Floor Cleaners 23
Slide 24: Indonesia Business Update
INDONESIA BUSINESS UPDATE
Slide 25: Continued momentum with 5% constant currency sales growth
Continued momentum with 5% constant currency sales growth Financial performance • Sales growth of 5% (constant currency) driven by Household Insecticides • Adjusted EBITDA margin at 23.6% Saniter, the new range contracted by 10 bps year-on-year of Hygiene products Category performance • Gained marke
Slide 26: Africa, USA & Middle East Business Update
AFRICA, USA & MIDDLE EAST BUSINESS UPDATE
Slide 27: Weak sales performance overall; May and June show recovery
Weak sales performance overall; May and June show recovery Financial performance • Sales declined by 23% (constant currency) due to disruption across countries on the back of COVID-19 • Strong recovery from mid-May across most of our countries of operation • Adjusted EBITDA margin decreased by 1370
Slide 28: Latin America & SAARC Business Update
LATIN AMERICA & SAARC BUSINESS UPDATE
Slide 29: Profitable, sustainable constant currency sales growth
Profitable, sustainable constant currency sales growth Financial performance • Sales grew by 23% (constant currency) • Latin America business recorded highest ever EBITDA margins in the last few years, driven by our cost saving programme • SAARC business continues to deliver steady performance 29
Slide 30: Appendix
APPENDIX
Slide 31: Actively championing social responsibility
Actively championing social responsibility 23% of the promoter Creating a more inclusive Aligned with the UN’s holdings in the Godrej and greener world through Sustainable Development Group is held in trusts that Godrej Good & Green Goals, and the needs of invest in education, local communities envi
Slide 32: Shareholding Pattern
Shareholding Pattern 4=>?&?,?0 "?30=> '08,>06 DII =4>,42#,=?90=> FII "?30=> 7,.6=:.6 #=:8:?0=> ),92@,=/ :A0=9809?:1 &492,;:=0 :?,6 090>4>80=2492 LIC ,;4?,7=:@; ,=60?>@9/ 32 Note: As of 30 June, 2020
Slide 33: Contact Us
Contact Us Institutional Investors Retail Investors Sameer Shah R Shivshankar Email: sa.shah@godrejcp.com Email: r.shivshankar@godrejcp.com Tel: +91 22 2519 4467 Tel: +91 22 2519 4359 33
Slide 34: Disclaimer
Disclaimer Some of the statements in this communication may be forward looking statements within the meaning of applicable laws and regulations. Actual results might differ substantially from those expressed or implied. Important developments that could affect the Company’s operations include change
Slide 35: Thank you
Thank you www.godrejcp.com
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